Crude Oil has been quite bullish in the last two months, since it came back from the dead at the middle of April. At same point last week, US WTI crude broke above $40, reaching $40.50, but then pulled back down for a refreshment before the next bullish assault.

Buyers had another attempt to the upside, but they failed to push the price above $40 again. This was a sign that buyers were getting exhausted. Oil reversed back down after forming a small upside-down hammer, which is a reversing signal and in the last few days we have seen a decent retrace lower.

But, it seems like the 100 smooth moving average (green) turned into support for crude Oil. US WTI crude pulled back around 250 pips higher on Friday last week, while today we are seeing a bounce off this moving average. US Oil is 200 pips higher now, so Oil is bouncing. Now the 50 SMA will decide whether Oil will remain bullish or if it will turn bearish after climbing for two weeks.